TripAdvisor Inc (TRIP)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	2,537,000	2,636,000	2,734,000	2,684,000	2,569,000	2,565,000	2,612,000	2,372,000	2,289,000	2,312,000	2,387,000	2,232,000	1,969,000	1,996,000	2,249,000	2,427,000	1,984,000	2,468,000	2,566,000	2,395,000
Total stockholders’ equity	US$ in thousands	871,000	823,000	781,000	808,000	861,000	813,000	796,000	767,000	789,000	794,000	779,000	785,000	886,000	908,000	912,000	1,027,000	1,161,000	1,648,000	1,575,000	1,507,000
Financial leverage ratio		2.91	3.20	3.50	3.32	2.98	3.15	3.28	3.09	2.90	2.91	3.06	2.84	2.22	2.20	2.47	2.36	1.71	1.50	1.63	1.59

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,537,000K ÷ $871,000K
= 2.91

The financial leverage ratio of TripAdvisor Inc. has shown fluctuations over the past eight quarters, ranging from 2.91 to 3.50. This ratio indicates the company's level of debt relative to its equity. A higher financial leverage ratio suggests that the company is more reliant on debt financing, which can magnify returns but also increase financial risk.

In the recent quarters, the financial leverage ratio has been on an upward trend, peaking at 3.50 in Q2 2023 before slightly declining in the subsequent quarters. This upward trend may indicate an increase in debt levels relative to equity, potentially signaling a higher risk for the company in terms of debt repayment obligations and overall financial stability.

It is essential for investors and stakeholders to closely monitor changes in the financial leverage ratio of TripAdvisor Inc. to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long term.